A conservative, best known for his hawkish views on foreign policy, got a rousing ovation when he said he was “thinking about” running for president in 2016.

Former United Nations Ambassador John Bolton may not make a big splash if he jumps into the presidential race—as those close to him expect he will—but his flirtation raises some intriguing questions.

Which face of the Republican Party will dominate if and when foreign policy rears its head during the next presidential campaign? And is there opportunity in running as the party’s resident hawk? READ MORE

The Keystone XL pipeline is returning to the limelight, with the State Department about to hand down its recommendation on whether the project should proceed. Washington Bureau Chief Jerry Seib explains the politics that make the project so sensitive for President Barack Obama and Democrats. Video

WSJ STORIES YOU SHOULDN’T MISS

PIPELINE POLITICS: One of the most sensitive decisions President Barack Obama faces during his second term — whether to approve the Keystone XL pipeline which would carry oil from Canada to Gulf Coast refineries–could come in the thick of the midterm campaign season. The State Department aims to release its report on the pipeline’s environmental impact next month, people inside and outside the government familiar with the decision said Thursday. Peter Nicholas and Carol E. Lee report.

EMERGING MARKETS: Investors dumped currencies in emerging markets, outlining growing anxiety about developing nations’ ability to prop up their economies as they face uneven growth. The slide reflects worries about outside forces, like shifting U.S. monetary policy, colliding with domestic political and economic tensions and unsettling investors at home and abroad. Prabha Natarajan, Nicole Hong and Sudeep Reddy report.

MIDEAST TALKS: Iranian, Israeli and American leaders laid out often competing visions of the Middle East’s future at a conference for the world’s business elite in Davos, Switzerland. The conference’s fixation on the Mideast emphasizes how far world leaders, especially the U.S., remain from turning the page on the region’s crises, officials said, warning that they could be drawn in even further in months ahead. Jay Solomon reports.

GOOGLE ALLIANCE: Google has been striving to change its profile as an ally of the Democratic Party, courting Republicans and building alliances with conservatives as regulators and Congress consider issues affecting the company’s business interests. Google’s quiet evolution into a pragmatic, inside-Washington player is emblematic of Silicon Valley’s broader shift. Thomas Catan and Brody Mullins explain the change.

DEBT-CEILING DEMANDS: As debt-ceiling negotiations approach, House Republicans are considering demanding a small number of discrete policy changes, mostly to the health-care law, since party leaders are skeptical a “clean” bill devoid of policy demands could pass the GOP-controlled House. Prominent ideas being discussed include changes to the law’s “risk corridor” and a repeal of the law’s medical-device tax. Michael R. Crittenden reports.

PHONE-DATA DEBATE: An independent privacy-watchdog board split over the NSA’s controversial phone-data program, with a narrow majority declaring it illegal and calling for its end. Though the recommendations further stoked the already-polarized national debate on surveillance, the board’s lack of consensus is likely to undercut the report’s influence, some lawmakers said. Siobhan Gorman and Jared A. Favole explain.

PAY RAISE: James Dimon, J.P. Morgan’s chief executive, will get a pay raise for 2013, following a tumultuous year in which the bank paid around $20 million to settle a string of lawsuits. Those payouts included a record $13 billion pact with the Justice Department, which left J.P. Morgan grappling with fractured relationships in the capital. Francesco Guerrera and David Enrich report.

–Compiled by Rebecca Ballhaus

RECOMMENDED READING FROM AROUND THE WEB

Asra Q. Nomani writes a moving tale of her voyage to Guantanamo Bay, Cuba, to watch the arraignment of Khalid Sheikh Mohammed, the man who has confessed to beheading former Wall Street Journal reporter Danny Pearl. Nomani, herself a former Journal reporter, recounts a decade’s worth of work she has done to piece together the story of the Pearl murder. [Washingtonian]

This week’s talks in Geneva aimed at finding a resolution to Syria’s civil war are likely to fail, but that doesn’t mean the U.S. should step in to try to end Syria’s tragedy, writes Aaron Miller. “What it does mean is that the President’s risk-averse policy — containment, humanitarian assistance, helping to organize and supply certain rebel groups, and keeping open the possibility of a political track — is absolutely right. The administration should continue to ignore its critics’ call for a more assertive policy, particularly if after a failed Geneva conference, there are calls for military action.” [CNN]

Analysts at the University of Virginia’s Center for Politics examine the 2014 Senate races and conclude the Republican party “has roughly a 50-50 shot to gain the six seats they need to consolidate Congress’ upper and lower chambers under Republican control.” [Center for Politics]

“Dr. Strangelove,” the movie that, half a century ago, depicted a deranged American general ordering a nuclear attack on the Soviet Union, contained more truth about the dangers of an unauthorized Cold War nuclear strike than critics at the time maintained, writes Eric Schlosser. [New Yorker]

James Fallows gathers eight essays on how to think about China. Number 1 on the list: Is China the next Mexico? The Mexican ambassador to China asks whether China has a shot at undergoing the political reforms that have “transformed” Mexico since the end of one-party rule. [The Atlantic]

About Washington Wire

Washington Wire is one of the oldest standing features in American journalism. Since the Wire launched on Sept. 20, 1940, the Journal has offered readers an informal look at the capital. Now online, the Wire provides a succession of glimpses at what’s happening behind hot stories and warnings of what to watch for in the days ahead. The Wire is led by Reid J. Epstein, with contributions from the rest of the bureau. Washington Wire now also includes Think Tank, our home for outside analysis from policy and political thinkers.